May 1, 2024

DC Deployed – Locates – Plans – Builds – Your Data Center

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The burgeoning demand for artificial intelligence has spurred a rush to construct data centers, leading to a scarcity of necessary components, suitable properties, and sufficient power. These facilities, packed with supercomputers, are pivotal in meeting the rising needs of AI technologies.

Escalating Supply Chain Delays

Data center industry leaders are currently facing extended lead times for essential supplies. Custom cooling systems now require five times longer to procure than in previous years. Similarly, the wait for backup generators has stretched from a mere month to an astonishing two years.

Creative Solutions in Data Center Locations

The scarcity of affordable real estate with adequate power and connectivity has prompted builders to explore innovative locations globally. Plans are underway to establish data centers adjacent to a volcano in El Salvador and within shipping containers in West Texas and Africa. This global search reflects the industry’s desperation to find viable sites for these power-intensive facilities.

Operational Challenges Faced by Hydra Host

Hydra Host, a data center operator, experienced significant challenges in securing 15 megawatts of power for a new facility intended to house 10,000 AI chips. Their extensive search covered multiple cities across the United States, yet they continue to struggle with finding a suitable location that combines the necessary power and cooling systems.

The Impact of AI on Data Center Demand

Since the release of OpenAI’s ChatGPT in late 2022, the demand for computational power has surged dramatically. This demand is primarily driven by the need for advanced AI chips, such as Nvidia’s GPUs, which are crucial for running sophisticated AI models. The increasing reliance on these technologies is overwhelming current data center capacities and causing significant supply shortages.

The Data Center Industry’s Response

Data center companies are under immense pressure to expand quickly. Cloud giants like Amazon Web Services, Microsoft, and Google are aggressively investing billions to add new data centers. Despite these efforts, the industry struggles to keep up with the explosive demand, evidenced by rising costs and virtually non-existent vacancy rates in available spaces.

Emerging Solutions and Future Outlook

To address power needs, some companies are turning to innovative solutions like modular nuclear reactors. Meanwhile, startups like Armada are deploying portable data centers powered by local, inexpensive energy sources. These developments are part of a broader industry shift towards more sustainable and adaptable data center infrastructure as the demand for AI continues to grow unabated.

Connect with DC Deployed

With tremendous expertise in locating, planning, and building data centers, DC Deployed is here to help you navigate the complexities of data center construction.

Our job is to ensure your infrastructure is tailored to your needs and ready to meet the demands of future technologies. Don’t let supply chain delays and site selection challenges slow you down. Reach out to us today to start your project:

Original article by Tom Dotan and Asa Fitch in The WSJ